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South San Francisco's industrial conversions and biotech housing demand create strong rental pockets. Properties near Caltrain command rents that make DSCR loans viable even when borrowers show minimal personal income.
As of February 2026, lenders increasingly view crypto holdings as acceptable reserves for non-QM products. This expands options for tech investors with paper wealth who want Peninsula rental properties.
DSCR Loans in South San Francisco
You need a property that generates enough rent to cover the mortgage by at least 1.0x to 1.25x, depending on the lender. Most require 15-25% down, 620+ credit, and six months of reserves.
Personal tax returns don't matter here. Lenders pull a rent schedule or appraisal showing market rent, then divide that by your proposed mortgage payment. If the ratio clears their threshold, you're approved.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in South San Francisco.
South San Francisco's industrial conversions and biotech housing demand create strong rental pockets. Properties near Caltrain command rents that make DSCR loans viable even when borrowers show minimal personal income.
As of February 2026, lenders increasingly view crypto holdings as acceptable reserves for non-QM products. This expands options for tech investors with paper wealth who want Peninsula rental properties.
You need a property that generates enough rent to cover the mortgage by at least 1.0x to 1.25x, depending on the lender. Most require 15-25% down, 620+ credit, and six months of reserves.
We work with 30+ non-QM lenders who price DSCR loans differently based on rental strength and reserves. Some accept 1.0x DSCR with higher rates, while others require 1.2x but offer better pricing.
Lender overlays vary wildly on cash-out refis, short-term rental properties, and foreign nationals. Shopping this across our network saves borrowers 0.5-1.5% in rate on identical scenarios.
South San Francisco properties near biotech campuses rent fast but appraise conservatively. If your appraisal shows market rent below actual leases, provide signed lease comparables to push the underwriter.
Most investors underestimate reserve requirements. Six months of PITI across all financed properties adds up. We see deals die at the finish line when borrowers can't document liquidity after closing costs.
Bank statement loans verify income through deposits, which helps self-employed operators expand portfolios. DSCR loans ignore your income entirely and look only at the property's cash flow.
Hard money works for fix-and-flip projects under 12 months. DSCR loans are for buy-and-hold investors who want 30-year amortization and manageable payments without proving wage income.
South San Francisco's Oyster Point biotech expansion drives rental demand, but property taxes here run 1.2-1.4% depending on Mello-Roos. Factor supplemental assessments into your DSCR calculation or you'll miss breakeven.
Rent control doesn't apply to single-family homes and condos built after 1995, but HOA dues in newer developments cut into cash flow. Lenders calculate DSCR after HOA and tax expenses, not just principal and interest.
Most lenders require 1.0x to 1.25x depending on credit and down payment. Strong Peninsula rental comps help if your appraisal is conservative.
Some non-QM lenders now accept verified crypto assets as reserves as of early 2026. Requirements vary by lender and volatility adjustments apply.
Some lenders allow STR income if you provide a rent schedule and local permit. Others require 12-month traditional lease comparables regardless of actual use.
Lenders include supplemental tax assessments in your monthly payment when calculating DSCR. South San Francisco districts can add $200-400 monthly to your obligation.
Yes, but lenders cap cash-out at 75% LTV and require stronger debt coverage ratios. Each lender has different overlays on cash-out versus rate-and-term refis.